Georgios C. Georgiou: It’s never too early to go out and get real-life, hands-on financial experience and to start investing

Georgios C. Georgiou, Managing Director & Global Head, Fixed Income Specialists, Allianz Global Investors, has effectively navigated the transition from the public to the private sector, finding success in several financial hubs across Europe.

Yet, as he attests, the supercharged cyclicality of financial services is not for the faint of heart.

You’ve built a career at the highest levels of investment services. What traits have been key to your success in such a competitive and ever-evolving industry?

On top of good luck, I think what’s helped me a lot along the way is my drive to make investing simple and personal. Even though capital markets and financial services can be a tremendously enabling force for the real economy, the value they bring to the table can sometimes feel highly intangible and overly complicated. Breaking down investments into basic maths and making asset classes relatable to both individual and institutional investors is key to building lifelong, prosperous partnerships.

You moved from the public sector, as a regulator at the UK’s Financial Conduct Authority (FCA) and an economist at the European Central Bank (ECB), to the private sector and some of the biggest names in investment banking and asset management. What were the biggest challenges in making such a transition?

At the time, the revolving door between the public and private sectors in Europe was not as established as in the US. Some even looked down on “switching sides.” I have probably always been a generalist at heart, drawn to transferable skills and creative problem-solving. Whereas a generalist mindset was at first a challenge for transitioning into the increasingly specialised world of finance, ultimately that pushed me to try different things and figure out where I could have the most impact.

As someone who has worked in multiple financial hubs, what does it take to succeed in different countries? And how does Germany’s business environment compare to that in other major financial centres?

Thriving in multiple countries seems to demand that, to some degree, home and the workplace become a state of mind. Those of us who come from relatively small and humble corners like Cyprus may have community roots that run deep but there’s another side to that. Growing up in a very open economy and a geopolitically precarious area turns out to be pretty good preparation for standing out and making authentic connections in a huge metropolis. Tapping into that diversity of mind and background is the big plus of financial centres. At the same time, fast news cycles and market noise are a big minus and can hamper business focus and precision. While Germany suffers less from that, it’s almost too quiet and slow at times. Finding the right mix of fast-and-slow is paramount to succeeding in any major hub.

As inflation eases across Europe – the ECB projects that it will average 2.1% in 2025 – markets are adjusting to a new reality. What do you see as the biggest opportunities and risks in the investment landscape right now?

We rarely get a chance to witness such monetary policy divergence globally, creating opportunities to profit from these widening differences in bond yields. The euro area is set to cut rates further as inflation normalises. China faces persistent deflationary pressures and is likely to continue to provide fiscal and monetary stimulus to its economy. Japan is finally hiking rates, with inflation there making a long-awaited comeback. Meanwhile, the US and the UK are keeping rates higher for longer. The biggest risk is that, while all these economies are expected to resynchronise eventually, some may actually continue to decouple – causing expectations around long-term inflation and debt dynamics to de-anchor and hurt markets.

Meanwhile, the asset management industry is facing several disruptive forces. What, in your view, will have the biggest impact – AI and generative AI, shifting investor expectations, regulatory changes or something else?

There may be several more disruptive forces up ahead that are less visible right now but I believe that they will be technological breakthroughs in some shape or form. The latest iteration of that trend is machine learning and generative artificial intelligence. It’s taking many industries by storm, including ours. Younger generations expect asset management to be as simple as an app and delivered in a highly personalised fashion. Without embracing AI, delivering more customised investment solutions is unlikely to be economically scalable for many asset managers.

Many Cypriots have built successful careers abroad and retaining talent on the island has long been a challenge. President Christodoulides hopes to reverse the ‘brain drain’ but what do you think it would take to bring more professionals back or stop them leaving the country in the first place?

Cyprus is a great place for entrepreneurship and especially for building small and medium-sized businesses; that’s not for everyone, though. To retain more talent, the country may have to attract more multinational corporations and to do that, Cyprus would have to focus its economic wagers to achieve a large-scale competitive edge. Two potential winners that the Government could back are renewable energy and big data centres, which are inextricably linked and self-reinforcing. Just consider that a ChatGPT search can consume ten times as much energy as a Google search.

Reaching the top in Financial Services doubtless comes with trade-offs. What has been the biggest personal cost of your success?

The supercharged pace and cyclicality of financial markets don’t really lend themselves to a career pause. Like most of us, I’ve never taken a proper break, some form of sabbatical, to take the time to reflect and reset more foundationally than just the basic recharge we tend to accomplish during short breaks.

Finally, for young Cypriots looking to build an international career in finance – or even follow a path like yours from the public to the private sector – what’s the best piece of advice you can give them?

For starters, I would say don’t write off public service. It’s easy to be cynical about making a real difference for the common good but policy-making can be a highly rewarding learning experience in ways you may have never imagined. As for a career in finance, I believe that many Cypriots are wired with the authenticity and resilience it takes to become truly global citizens and to excel in global markets. It’s never too early to go out and get real-life, hands-on financial experience and to start investing. Don’t be afraid to fail. The most valuable investment lessons and rebounds often come from getting some things wrong at first and solving the most unlikely problems.

This article was first published in the March issue of GOLD magazine. To view it click here